FXStreet put the Australian dollar (AUD) near 0.7025 against the U.S. dollar (USD) in early Asian trading Monday, as markets awaited China’s next factory reading and an Australian rate decision due Tuesday.
The outlet linked the U.S. dollar’s strength against its Australian counterpart to elevated Middle East tensions and safe-haven demand. Iran’s Supreme Leader Mojtaba Khamenei wrote on his official English-language Telegram channel: “Any level or type of threat must be met with an immediate, impactful, and geographically unrestricted response.” The post warned of a possible threat; it did not report a new attack.
The National Bureau of Statistics of China reported that its manufacturing purchasing managers’ index fell to 49.3 in October from 50.1 in September. A separate RatingDog China General Manufacturing PMI was scheduled for 8:45 p.m. ET Sunday (01:45 GMT Monday; 9:45 a.m. Beijing time). The NBS and RatingDog figures come from separate surveys. S&P Global says the index draws on responses from roughly 650 manufacturers.
China is Australia’s largest trading partner. Two-way goods and services trade reached A$326 billion in 2025, or 25% of Australia’s total trade, according to the Department of Foreign Affairs and Trade.
The Reserve Bank of Australia’s cash rate target has been 4.60% since Sept. 30. On Oct. 29, ASX futures pricing implied an 80% chance of a 25-basis-point increase to 4.85%; that is market pricing, not an RBA decision. A move to that level would put the rate at its highest since November 2008, based on the RBA’s historical table.
Australia’s annual consumer price inflation was 4.3% in the 12 months to September, while trimmed-mean inflation was 3.6%, the Australian Bureau of Statistics reported. The RBA is due to announce its decision at 10:30 p.m. ET Monday (03:30 GMT Tuesday).
